Gold Price Futures (GC) Technical Analysis – June 16, 2017 Forecast

August Comex Gold futures are trading higher shortly before the regular session opening. The price action suggests the selling related to the Fed rate hike may be over. A weaker U.S. Dollar is also making gold an attractive investment.

Given the Fed’s assessment of the economy, traders will be watching today’s reports on housing very closely. Traders will also be watching the U.S. stock market because a steep sell-off could drive investors into the safety of the gold market.

Technical Analysis

The main trend is down according to the daily swing chart. However, today’s session begin with the gold market in the window of time for a potentially bullish closing price reversal bottom.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. This zone is currently being tested. This should be considered a value zone. This being said, we could see a support base being build inside this zone.

Forecast

Based on the current price at $1255.90 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the 50% level at $1258.30.

A sustained move under $1258.30 will indicate the presence of sellers. This could drive the market into the Fibonacci level at $1248.70. This is followed closely by an uptrending angle at $1244.80.

We could see a technical bounce on the first test of $1244.80. It is also the trigger point for an acceleration into the next uptrending angle at $1231.80. This is the last potential support angle before the main bottom at $1217.80.

A sustained move over $1258.30 will signal the presence of buyers. This could fuel a rally into the next downtrending angle at $1266.80.

Overtaking $1266.80 could trigger a further rally into an uptrending angle at $1271.80. Overtaking this angle will put gold in a strong position.

Watch the price action and read the order flow at $1258.30 all session. Trader reaction to this level will set the tone for the day.